Second data center could come to Rosemount, stirring excitement — and concern

A $700 million Meta data center is in the works, and now a second data center plan, dubbed "Project Mercury" is under review in the south metro suburb.

November 17, 2023 at 4:58PM
Meta plans to build a data center for Rosemount. (David Paul Morris, Bloomberg/The Minnesota Star Tribune)

As Rosemount considers approval of an immense Meta Platforms data center, plans for an even bigger data center — one more than double the size of the Wells Fargo Building in downtown Minneapolis — is also being floated in the growing southern suburb.

Local leaders see the potential construction as a boon for the economy, with the promise of growing the tax base. But some residents are uncertain, worried about whether the data centers will affect resources like electricity and water, create noise, or have harmful effects on animals.

"I think we see [data centers] as certainly good opportunities," said Logan Martin, Rosemount city administrator. "Beyond the use of water and electricity, it's a minimal impact on city services."

Planning for the second data center, dubbed "Project Mercury", is in the early stages, and currently under environmental review. Developers are actually proposing two different possibilities: several data center buildings, totaling 2.3 million square feet, or a mixed-use commercial and industrial project. Either concept would be located on 333 acres east of Hwy. 52 and north of County Road 42.

State regulators approved electricity contracts for the $700 million Meta facility in October. The data center, previously called "Project Bigfoot," would sit on 280 acres at the University of Minnesota's UMore Park along County Road 42 if the city approves plans Dec. 5.

Neighbors' feedback

The development proposals have left neighboring property owners with plenty of questions. Some attended a city open house about the Meta project this week where Rosemount City Council Member Paul Essler chatted with visitors with questions about noise, water usage and where all the necessary electricity would come from.

Resident Kayla Hauser worried about the amount of water the facility will use. She said she's also heard about the discount Xcel will give Meta on electricity. "Can I get this cushioned deal?" she asked.

Meta will receive an undisclosed discount off Xcel's general rates as a large power user. The Minnesota Department of Commerce determined that the deal isn't discriminatory to other consumers and wouldn't leave anyone "worse off," a Public Utilities Commission filing said.

The Meta data center would house servers powering Meta sites, including Facebook and Instagram. Meta did not respond to an email requesting comment. Erin Carlson, who is listed as Project Mercury's contact, said she couldn't share any additional details about that project.

Kim Dimmick, who owns Dakota Ridge Stables on the far eastern edge of Rosemount, is worried about noise from the Meta facility. She's heard that humming sounds from data centers can travel more than 2 miles, and she's in a low spot just a mile away, she said.

Dimmick said she's also concerned about excessive water use, heat coming from the centers and potential impacts on her horses — and she's feeling frustrated with city officials.

"That data center could totally change this area and totally lower the value of my property," she said.

Some residents are resigned to development happening nearby and are optimistic the data centers will be better neighbors than other potential operations.

Debra Marthaler, who lives between Hwy. 52 and Hwy. 55, hopes neither project will affect her use of the well on her property.

"We all knew [development] was coming ... we just didn't know what," she said, conceding that a data center, or any building, is better than another landfill.

Others, however, welcome the Meta data center — and have no problem considering similar buildings on Rosemount's many vacant acres.

"The way that the world is going, these sorts of things are necessary," said Paul Timmerman, a Rosemount resident who works in the tech field, calling them a "reasonable use" for the city's land.

Considering the impact

Martin said the city "absolutely" considers factors like water use and traffic impacts with a project such as the Meta data center.

"We're comfortable with our ability to provide the level of water they need but that absolutely is still part of the calculus," he said.

The Meta project would use about as much water as a 100-room hotel, he said.

As far as noise, Martin said officials have asked the company and others about it and no one has reported any issues.

The Meta site is more than 800 feet from County Road 42, he said, making the noise even less of a concern, he said.

Electricity use is also a top concern for many residents.

"Data centers use an incredible amount of electricity," said Gabriel Chan, a professor of science, technology and environmental policy at the University of Minnesota's Humphrey School. "There are areas of the country where they're seeing a lot of data center growth, and it's really impacting both utility and grid operator planning."

There's concern in places about whether the regional grid will be able to handle so many data centers coming online at once, he said.

Still, some residents aren't put off by the changes coming to their part of town.

Rosemount resident Ricky Schwalen, who attended the open house, said he came to learn about the new power line being constructed near his home to supply the Meta data center. It's planned for the other side of Blaine Avenue, where he lives.

Schwalen, who moved to Rosemount last summer from Farmington, said he asked the city about impending development projects before he closed on his house. The city didn't say anything about the Meta project, he said, though he thinks they "had stuff in the works."

But knowing about the project wouldn't have changed his mind about buying his home.

"As long as the power lines are on the other side of the road, it doesn't bother me that they're going to build a data center," he said.

about the writer

about the writer

Erin Adler

Reporter

Erin Adler is a suburban reporter covering Dakota and Scott counties for the Minnesota Star Tribune, working breaking news shifts on Sundays. She previously spent three years covering K-12 education in the south metro and five months covering Carver County.

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